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| State Abbreviation: | IN |
| State Tax Withholding State Code: | 18 |
| Acceptable Exemption Form: | WH-4 |
| Basis For Withholding: | State Exemptions |
| Acceptable Exemption Data: | 0 / Number of Exemptions / Number of Additional Exemptions |
| TSP Deferred: | Yes |
| Special Coding: | Determine the Total Number Of Allowances field as follows: First Position − Enter 0 (zero). Second and Third Positions − Enter the number of exemptions claimed. Determine the Additional Exemptions Claimed field as follows: First and Second Positions − Enter the number of additional exemptions claimed on Line 5 of the WH-4. Valid values are 00 through 99. If no allowances are claimed, enter 00. |
| Additional Information: | None |
Withholding Formula (Effective Pay Period 21, 2000)
- Subtract the biweekly Thrift Savings Plan contribution from the gross biweekly wages.
- Subtract the nontaxable biweekly Federal Health Benefits Plan payment(s) (includes dental and vision insurance program, and flexible spending account − health care and dependent care deductions) from the amount computed in Step 1.
- Add the taxable biweekly fringe benefits (taxable life insurance, etc.) to the amount computed in step 2 to obtain the adjusted gross biweekly wages.
- Multiply the adjusted gross biweekly wages times 26 to obtain the annual wages.
- Determine the exemption allowance by applying the following guideline and subtract this amount
from the result of step 4.
Exemption Allowance = $1,000 x Number of Exemptions1
1 Number of exemptions claimed for self, spouse, over age 65, blindness, and dependents. - Determine the additional allowance by applying the following guideline and subtract this amount
from step 5 to compute the taxable income.
Additional Allowance = $1,500 x Number of Additional Exemptions2
2Number of exemptions claimed for certain qualifying dependents.
- Multiply the taxable income computed in step 6 by 3.4 percent to obtain the annual Indiana tax withholding.
- Divide the annual Indiana tax withholding by 26 to obtain the biweekly Indiana tax withholding.